In a significant crackdown on errant real estate developers, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has temporarily suspended the registration of 1,950 lapsed real estate projects across Maharashtra. The regulator has warned that an additional 3,500 projects may face similar action in the coming days due to non-compliance with statutory regulations.
Non-Compliance and Lapsed Projects
The action follows show-cause notices issued in December 2024 to 10,771 projects, primarily in the Mumbai Metropolitan Region. Developers were given a 30-day deadline to fulfill mandatory disclosure obligations, including submitting Form 4, which certifies project completion and is accompanied by an Occupation Certificate (OC).
Failure to comply has led to the suspension of 1,950 projects, with restrictions imposed on related transactions and freezing of bank accounts. MahaRERA stated that scrutiny is ongoing for 1,283 projects, while 3,499 projects are next in line for action due to non-responsiveness.
Developer Response
Out of the 10,773 projects flagged, developers of 5,324 projects have replied to the notices. Of these, 3,517 submitted their OCs, and 524 sought extensions for project completion. The compliance drive has seen a mixed response, highlighting the need for stricter oversight in the real estate sector.
Protecting Homebuyers’ Interests
MahaRERA Chairman Manoj Saunik emphasized that the Real Estate (Regulation and Development) Act, 2016, prioritizes transparency, accountability, and financial discipline to protect homebuyers. Regular updates on project status are mandatory but often neglected.
Saunik pointed out that a review in January 2023 revealed a concerning trend, with only 3 out of 748 projects updating required information. While there has been some improvement following persistent follow-ups, many projects remain non-compliant.
Cities Affected
The suspended projects span across Maharashtra, including key cities like Mumbai, Pune, Nagpur, Nashik, and others. The regulator’s action aims to ensure transparency and restore faith among homebuyers by holding developers accountable.
As MahaRERA continues its scrutiny, the real estate sector faces mounting pressure to adhere to compliance norms, signaling a much-needed shift toward greater discipline and transparency.
